Political Economy of Housing Financialization

The US subprime mortgage crisis highlighted the importance of household debt management for global economic stability. This book explores how national housing systems differ in commodification and financialization, affecting economic precarity, volatility, and political preferences. Policy suggestions are offered to weaken the links between housing, instability, and inequality.

Format: Paperback / softback
Length: 168 pages
Publication date: 21 December 2020
Publisher: Agenda Publishing

The US subprime mortgage crisis, which nearly brought down the global financial system during the 2007-08 financial crisis, underscored the critical importance of household debt management in maintaining the stability of the international economy. The configuration of mortgage finance systems in European economies, ranging from the UK to Sweden to Spain, exerts profound effects on national macroeconomic and political outcomes.

In his book, Gregory Fuller delves into how national housing systems differ in terms of their commodification and financialization. He highlights that mortgages are more prevalent in certain systems compared to others, with some encouraging families to treat housing as a tradeable asset while others do not. Additionally, certain states offer extensive social housing programs while others provide virtually none. These disparities are shown to impact households' economic precarity, macroeconomic volatility, and ultimately their political preferences.

Fuller draws on these comparisons to offer a range of policy suggestions aimed at weakening the connections between housing, economic instability, and inequality. He advocates for policies that promote greater housing affordability, reduce mortgage debt burden, and strengthen social safety nets. By addressing these issues, Fuller aims to create a more stable and equitable economic environment that benefits both households and society as a whole.

The US subprime mortgage crisis serves as a stark reminder of the interconnectedness of the global economy and the critical role of effective household debt management in maintaining stability. By examining the differences in national housing systems and offering policy recommendations, this book contributes to our understanding of the factors that contribute to economic inequality and offers insights into potential solutions.

Weight: 228g
Dimension: 138 x 214 x 13 (mm)
ISBN-13: 9781788211000